| Question And Answer | |
|---|---|
| Subject: | Capital gain tax applicable for landlord or tenant |
| Category: | Income-Tax |
| Querist: | Kollipara sundaraiah |
| Answered by: | Law Intern |
| Tags: | Capital Gains |
| Date: | March 27, 2025 |
Sir,
A landlord own vacant site leased to tenant (leased period from 2016 to 2026) and tenant leased period for 2018 construction of commercial building in leased site
If landlord own vacant site along with tenant construction building sales to third party year 2025
Question:
Above transaction capital gain tax applicable for landlord or tenant for it purpose.
As regards the land, the landlord is liable for capital gains tax on the sale of the land.
As regards the building, the tenant incurred the cost. However, whether he retains ownership of the building depends on the terms of the lease.
If the tenant has ownership of the building, he will be assessed to capital gains on the sale of the building.
If the landlord has ownership of the building, he will be assessed to capital gain on the sale of the building but will not get a cost as he has not incurred anything.
.